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Capital Southwest Corporation (NASDAQ:CSWC) Analyst Sets New Price Target

  • Capital One Financial analyst sets a new price target for NASDAQ:CSWC at $22, indicating a potential upside of 10.17%.
  • CSWC reports Q2 2026 earnings of $0.57 per share, missing the Zacks Consensus Estimate by 1.72%, but revenue surpasses estimates by 2.17%.
  • The company's total investment portfolio valued at $1.9 billion, with a significant portion in first lien senior secured debt.

Capital Southwest Corporation (NASDAQ:CSWC) is a business development company that focuses on providing capital to middle-market companies. It operates primarily in the financial investment management industry. On November 4, 2025, an analyst from Capital One Financial set a price target of $22 for CSWC, suggesting a potential price increase of approximately 10.17% from its current trading price of $19.97.

During its Q2 2026 earnings call, CSWC reported quarterly earnings of $0.57 per share, which fell short of the Zacks Consensus Estimate of $0.58 per share. This earnings miss represents a negative surprise of 1.72%. Despite this, the company reported revenues of $56.95 million, surpassing the Zacks Consensus Estimate by 2.17% and showing an increase from the $48.71 million in revenues from the same period last year.

CSWC's total investment portfolio is valued at $1.9 billion, with a credit portfolio of $1.7 billion, primarily consisting of 99% first lien senior secured debt. The company committed $241.5 million in new credit investments during the quarter, achieving a weighted average yield on debt investments of 11.5%. The equity portfolio stood at $171.7 million, with $4 million in new equity co-investments.

The company recorded a pre-tax net investment income of $34 million, equating to $0.61 per weighted average common share. CSWC paid regular monthly dividends of $0.19 per share for July, August, and September 2025, along with a supplemental dividend of $0.06 per share in September, totaling $0.64 per share for the quarter. The balance sheet showed cash and cash equivalents of $87.4 million and total net assets of $947 million, resulting in a net asset value per share of $16.62.

CSWC's stock price has fluctuated between a low of $19.91 and a high of $20.55 today. Over the past year, the stock has reached a high of $23.86 and a low of $17.46. The company's market capitalization stands at approximately $1.11 billion, with a trading volume of 993,991 shares. Despite the recent earnings miss, the analyst's price target suggests optimism for the stock's future performance.